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Models of Capitalism and Income Distribution in Transition Economies: A Comparative Perspective

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  • Alexei Izyumov
  • Trista Claxon
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    Abstract

    During the 1990s, all of the European transition economies (TE) experienced a major recession and suffered from the explosion of income inequality. However, distribution of income between labor and capital differed greatly from one group of post-communist countries to another. The paper discusses and analyzes linkages between models of capitalism that emerged in former communist countries in the 1990s and the outcome of capitalist transition for labor in terms of income distribution and inequality. It is based on the estimates of the Marxian rate of exploitation and other indicators of labor income performance during the reform period.

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    Bibliographic Info

    Article provided by M.E. Sharpe, Inc. in its journal Journal of Economic Issues.

    Volume (Year): 43 (2009)
    Issue (Month): 3 (September)
    Pages: 733-758

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    Handle: RePEc:mes:jeciss:v:43:y:2009:i:3:p:733-758

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    Web page: http://www.mesharpe.com/mall/results1.asp?acr=jei

    Related research

    Keywords: income distribution; inequality; rate of exploitation; real wages; government policies;

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    1. Jan Svejnar, 2002. "Transition Economies: Performance and Challenges," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 3-28, Winter.
    2. Simon Johnson & Daniel Kaufman & Andrei Shleifer, 1997. "The Unofficial Economy in Transition," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(2), pages 159-240.
    3. Beck, T.H.L. & Laeven, L., 2006. "Institution building and growth in transition economies," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4295080, Tilburg University.
    4. Christopher J Gerry & Tomasz Mickiewicz, 2007. "Inequality, Democracy and Taxation: Lessons from the Post-Communist Transition," Working Papers 74, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
    5. Boyer, Robert, 2005. "How and Why Capitalisms Differ," MPIfG Discussion Paper 05/4, Max Planck Institute for the Study of Societies.
    6. Veblen, Thorstein, 1899. "The Theory of the Leisure Class," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1899.
    7. Josef C. Brada, 1996. "Privatization Is Transition--Or Is It?," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 67-86, Spring.
    8. Mitra, Pradeep & Yemtsov, Ruslan, 2006. "Increasing inequality in transition economies : is there more to come?," Policy Research Working Paper Series 4007, The World Bank.
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    10. Zbigniew Matkowski, 2004. "Postsocialist Countries : Macroeconomic Performance, Growth Prospects, and Social Welfare," Eastern European Economics, M.E. Sharpe, Inc., vol. 42(3), pages 44-80, May.
    11. Arjun Jayadev, 2007. "Capital account openness and the labour share of income," Cambridge Journal of Economics, Oxford University Press, vol. 31(3), pages 423-443, May.
    12. Tito Boeri & Katherine Terrell, 2001. "Institutional Determinants of Labor Reallocation in Transition," William Davidson Institute Working Papers Series 384, William Davidson Institute at the University of Michigan.
    13. Seeth, Harm Tho & Chachnov, Sergei & Surinov, Alexander & Von Braun, Joachim, 1998. "Russian poverty: Muddling through economic transition with garden plots," World Development, Elsevier, vol. 26(9), pages 1611-1624, September.
    14. Milan Vodopivec & Andreas W�rg�tter & Dhushyanth Raju, 2005. "Unemployment Benefit Systems in Central and Eastern Europe: A Review of the 1990s1," Comparative Economic Studies, Palgrave Macmillan, vol. 47(4), pages 615-651, December.
    15. Blanchard, Olivier, 1998. "The Economics of Post-Communist Transition," OUP Catalogue, Oxford University Press, number 9780198293996.
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